Voluntary Guidelines – Greenwashing or Genuine TBLI Mobilization? Lorenzo Saà, Assessment & Training Manager Amsterdam, November 13, 2009

What the PRI is … a global collaborative investor network voluntary and aspirational grounded in fiduciary duty process-oriented principles for integrating ESG issues into mainstream investment practices and across asset classes a forum for discussion and concrete action on long-term risk issues and value drivers a Secretariat providing practical guidance on emerging ESG issues and implementation support for signatories

a global collaborative investor network

voluntary and aspirational

grounded in fiduciary duty

process-oriented principles for integrating ESG issues into mainstream investment practices and across asset classes

a forum for discussion and concrete action on long-term risk issues and value drivers

a Secretariat providing practical guidance on emerging ESG issues and implementation support for signatories

ESG-washing risk vs genuine mobilisation? Quantity versus quality dilemma? Is it a marketing tool to easily acquire a license to operate and avoid further regulation? Information provided to the Secretariat is Self-assessed; confidential and non audited So is it useful or distortive?

Quantity versus quality dilemma?

Is it a marketing tool to easily acquire a license to operate and avoid further regulation?

Information provided to the Secretariat is

Self-assessed;

confidential and

non audited

So is it useful or distortive?

Advantages of a voluntary initiative… Allows the initiative to reach out to those interested in knowing and implementing ESG aspects along a wide range of ESG experience levels . 637 Total 123 Professional service partners 323 Investment managers 191 Asset owners Number of signatories

Allows the initiative to reach out to those interested in knowing and implementing ESG aspects along a wide range of ESG experience levels .

Advantages of a voluntary initiative… Enables the cooperation among players and sharing of ideas via many of the Secretariat services: more space for best practice sharing . The Clearing house via its over 185 actions is an expression of this.

Enables the cooperation among players and sharing of ideas via many of the Secretariat services: more space for best practice sharing .

The Clearing house via its over 185 actions is an expression of this.

Advantages of a voluntary initiative… As it is Investor-led it provides a tool for the market “ to do their thing ” and leave the space to regulation where it is necessary.

As it is Investor-led it provides a tool for the market “ to do their thing ” and leave the space to regulation where it is necessary.

287 signatories responded 98% of those required to complete survey, after “grace” year. 100 of the 287 signatories participated in a verification process. Five signatories were delisted. Addressing the Challenges: Yearly Assessment Process

287 signatories responded

98% of those required to complete survey, after “grace” year.

100 of the 287 signatories participated in a verification process.

Five signatories were delisted.

Assessment Outputs

Report on Progress, eg. Principle 4 ESG is working its way into contracts but less so into incentives

ESG is working its way into contracts but less so into incentives

Report on Progress, eg. Guidance

Individual Responses Published

Assessment Outputs - Confidential Investment Manager X compared to All PRI IMs

Signatory requirements change Scaled mandatory fee by 2011, which will not be higher than today’s maximum voluntary contribution. Maintain the Reporting and Assessment questionnaire requirement. This year there was a 98% response rate. Minimum set of disclosure requirements by 2011 that: Will not be commercial in nature; Will not be implementation prescriptive. Continue discussion on possibly introducing voluntary assurance mechanisms.

Scaled mandatory fee by 2011, which will not be higher than today’s maximum voluntary contribution.

Maintain the Reporting and Assessment questionnaire requirement. This year there was a 98% response rate.

Minimum set of disclosure requirements by 2011 that:

Will not be commercial in nature;

Will not be implementation prescriptive.

Continue discussion on possibly introducing voluntary assurance mechanisms.

Not alone GRI – voluntary scheme on ESG on the corporate level: over 1,000 companies used GRI. CDP – voluntary initiative that contacts over 3,500 corporations on behalf of 475 institutional investors (expecting around 2,000 responses). Extractive Industries Transparency Initiative – voluntary and helps fight corruption. Pharma Futures….. Etc.

GRI – voluntary scheme on ESG on the corporate level: over 1,000 companies used GRI.

CDP – voluntary initiative that contacts over 3,500 corporations on behalf of 475 institutional investors (expecting around 2,000 responses).

Extractive Industries Transparency Initiative – voluntary and helps fight corruption.

Pharma Futures….. Etc.

Lewis Gordon In steps What we have done Looking back from the future

In steps

What we have done

Looking back from the future

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